What is the exact difference between consolidated and combined financials and what is the rationale for choosing one presentation format over another? Thanks

I think the key to determining whether to consolidate or not is primarily based on "control". If you control more than 50% of the voting stock, then you consolidate as there is now a parent / subsidiary relationship.

For Combined Financial Statements, an example would be if companies are under common control (i.e. an individual owns many companies).



Edited 1 time(s). Last edit at Monday, February 8, 2010 at 07:06PM by johnnybogey.